Mayank Patel
Nov 19, 2025
5 min read
Last updated Nov 19, 2025

Even at the final step, things can—and often do—go wrong. Payment failures, whether by technical glitches or poor user experience (UX), can quietly erode your CR and distort your analytics.
Every failed transaction represents not just a lost sale, but also potential damage to customer trust and operational efficiency. In this article, we’ll explore how payment failures impact Conversion Rate Optimization (CRO), how to identify them, and what you can do to fix and prevent them.
Also Read: How CRO Tactics Leverage the Foot in the Door Phenomenon for Better Conversions
By the time a customer reaches the payment stage of checkout, you’ve done most things right – they’ve found a product, decided to buy, and entered their details. This is the home stretch of the conversion funnel.
Unfortunately, it’s also a place where things can fall apart. Payment failures refer to any step where the customer’s attempt to pay does not result in a successful transaction. These failures generally fall into two categories:
Let’s dive into each category and see how they negatively affect conversion rates.
Technical failures are often invisible until you investigate, but they have an immediate impact on conversion; if the payment doesn’t go through, the sale is lost. Common technical payment issues include:
Many shoppers won’t try again after experiencing such a failure. Failed payments also create invisible leakage in your funnel. You might see that only, say, 90 out of 100 initiated checkouts became orders, but without proper tracking you may not realize that 5 of those 10 “abandons” were actually people thwarted by a payment error (not cold feet).
This is why payment failures are sometimes called a hidden conversion killer; if you’re not measuring them, you might attribute the loss to user indecision or other factors when the real cause was a technical glitch.
Beyond the lost sale, technical payment failures have ripple effects: they can trigger extra customer support workload (customers contacting support asking “Did my order go through or not?”), lead to duplicate charges or chargebacks in edge cases, and generally erode trust in the reliability of your site.
Also Read: Top 10 Conversion Rate Optimization agencies in India
Not all payment failures are due to back-end tech problems. Many times, the issue is how the payment process is presented to the user. UX issues can cause the user to abandon the checkout or make mistakes that prevent success.
As the saying goes, “you cannot fix what you cannot see”. Many organizations don’t realize how much leakage is happening at the payment stage precisely because they aren’t tracking it. Here are some actionable methods for identifying payment failures in your funnel:
Use funnel analysis in your analytics platform (Google Analytics, Adobe Analytics, etc.) to see the drop-off rate at each stage: e.g. Shipping -> Payment -> Confirmation. If you notice a significant drop-off at the payment step (users who start payment but never reach the “order confirmation” page), that’s a red flag.
For instance, if 95% of users who reach the payment page submit it but only 90% get to the thank-you page, it implies ~5% experienced a failure or gave up on payment. Many platforms like Shopify provide built-in checkout funnel reports; if not, you can set up custom funnel tracking.
Go beyond just page views. Instrument your frontend to log specific payment error events. For example, if a user clicks “Place Order” and an error message is shown (card declined, validation error, etc.), trigger an analytics event (like payment_error_shown with details like error type).
This can be done via Google Tag Manager or similar tools, capturing form validation errors or gateway responses. Over time you might discover patterns (e.g., many errors happen on mobile, or a spike in errors after a certain date possibly indicating a new bug). Error tagging bridges the gap between a generic “user dropped off” and knowing “user saw a card decline message and dropped off.”
Treat your payment success as a metric that deserves its own monitoring. Some key performance indicators (KPIs) to track:
Consider using developer-focused error tracking tools such as Sentry or New Relic on your site. These can catch JavaScript errors or backend exceptions during the checkout process that may not be obvious otherwise. For example, if a payment API call is failing due to a bug, an error monitoring tool can alert you with the stack trace. Additionally, session replay or heatmap tools (like Hotjar, FullStory, or ContentSquare) can be used to watch how real users are interacting with the checkout. Seeing multiple users stop at a particular field or repeatedly click “submit” with nothing happening can hint at a problem.
Also Read: Do AI-Generated Product Descriptions Convert Better Than Humans?
Here are practical recommendations:
If you rely on a single payment gateway, consider adopting a multi-gateway or multi-acquirer strategy. This adds redundancy and allows “smart routing” of transactions. For example, if Gateway A is down or having a high failure rate, transactions can automatically route through Gateway B.
Similarly, you might route transactions by geography or card type to the gateway that performs best for each scenario. Payments orchestration platforms can handle this logic. Merchants often don’t realize how much revenue is lost due to suboptimal routing and gateway downtime.
Work with your payment providers to understand why authorizations fail and how to improve. Sometimes tweaking fraud rules to reduce false positives can instantly boost approval rates (false declines were costing merchants more than fraud itself, with legitimate customers being turned away.
Make sure your fraud prevention is modern and calibrated; overly strict rules can kill conversion by rejecting real customers. On the flip side, if insufficient funds (NSF) declines are common, consider strategies like retrying after a short interval or timing subscription rebills around paydays.
The “Blindspot” we discussed was NSF; seeing it as a dead end is outdated thinking. These are often good customers with temporary issues. Some payment platforms (like Kipp’s solution) even enable covering an NSF transaction for the issuer to approve it.
The general idea is to not take declines as fixed fate: analyze decline codes and address what you can. If 44% of declines are due to insufficient funds, maybe your business can implement a grace period or flag those customers for a follow-up attempt.
Especially for scenarios like subscription payments or async charges, use automatic retry logic for soft declines. Many payment systems allow configuring retries, for e.x., retry in 3 days if a charge fails. This can recover sales that would otherwise be lost.
Similarly, leverage card updater services (Visa Account Updater, etc.) which automatically provide updated card info for cards that expired or were replaced. If 10% of your declines are due to expired cards, an updater can fix that silently.
If your business operates in regions with mandated 3DS (e.g., Europe’s PSD2 regulation), make sure you implement the latest version (3DS2) which is more user-friendly (supports biometrics, in-app flows, etc.). Also consider “frictionless 3DS” or “3DS data-only” flows offered by some providers.
If 3DS is optional in your region, use it in a targeted way (for high-risk transactions or new customers) rather than everyone, to avoid unnecessary friction. In short: security is important, but configure it in a way that minimizes impact on legitimate users.
Display security badges (SSL certificate symbols, PCI compliance notices, etc.) and maybe brief text like “All transactions are securely encrypted.” Highlight accepted payment methods and any guarantees (“30-day refund policy” can also help general confidence).
If you have visible customer reviews or ratings, some sites even show a quick testimonial or star rating near checkout to remind the user that others successfully purchased. The goal is to eliminate doubt. A professional design and a familiar checkout layout also help; if your checkout looks homemade or very unusual, first-time customers might worry.
Use larger touch-friendly buttons, avoid requiring pinching/zooming. Use mobile wallet payments (Apple Pay, Google Pay) which can dramatically simplify mobile payment to a thumbprint or face scan. Not only do these reduce typing (which reduces errors), they also often have built-in fraud checks that can improve authorization rates (because Apple Pay and similar are considered highly secure, banks often approve them readily).
Sometimes customers have last-minute concerns or confusion that, if not addressed, lead to abandonment. Implementing live chat or at least prominently displaying a support contact (like a phone number or an email/chat button saying “Questions or issues? We’re here to help!”) on the checkout page can reassure users that help is at hand.
Despite your best efforts, some payments will fail. How you handle them afterward can still turn the situation around. For instance, if you capture the customer’s email early in checkout (which you should), you can send an automated follow-up if they didn’t complete the purchase.
Many cart abandonment email strategies focus on “You left items in your cart,” but you can tailor this if you know a payment was declined. The email could say something like “We noticed you tried to place an order but it didn’t go through. Need help completing your purchase? You can click here to retry with a different payment method or contact our support.”
Providing a direct link back to the checkout (with their cart preserved) makes it as easy as possible for them to try again. Even without an email, if the user is logged in or if you have an “incomplete order” record, you might trigger a notification or prompt on their next login.